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The Department of Education, under President Donald Trump, unveiled a new initiative on Monday designed to give students a clearer picture of their future earnings potential before committing to student loans.
This new feature, known as the “earnings indicator,” has been integrated into the Free Application for Federal Student Aid (FAFSA). It leverages existing data from the Department of Education to provide students with average earnings information associated with different colleges and universities post-graduation.
In a statement, U.S. Secretary of Education Linda McMahon highlighted the growing skepticism about the value of a college degree, noting that over half of Americans now believe the cost is not justified. With student loan debt nearing $1.7 trillion, she emphasized the importance of transparency in how education correlates with earnings. “This earnings indicator will make earnings data more accessible and empower students to make informed decisions before taking on debt,” McMahon stated.
As students fill out their FAFSA applications, they share personal information with potential schools. The updated form will now present financial data for each selected institution, revealing whether the average earnings of its graduates fall below those of a typical high school graduate. If so, a “lower earnings” warning will appear.
The Department of Education reports that more than 2 percent of undergraduate students nationwide attend schools where graduates earn less, on average, than those with only a high school diploma.
According to the department, more than 2 percent of undergraduate students across the U.S. go to a college or university where graduates earn less than individuals with a completed high school education on average.
“These same institutions receive upwards of $2 billion in Federal student aid annually,” ED said in a press release.
ED explained the tool can help students and parents make more financially savvy education decisions and help high school counselors guide students to make the best long-term decisions for their education and career. ED said students can further explore program-level result using the College Scorecard.
READ MORE: Exclusive — Education Secretary Linda McMahon: Parents, Students Must Prioritize ‘Return on Investment’ for Career Success
The department said the earnings indicator is meant to inform students, not to limit their choices.
“Students and families should have the full picture before making postsecondary education choices, and earnings outcomes are one of many factors students and families should consider alongside cost, mission, location, and personal interests,” ED said.
The data used for the earnings indicator is posted on the FSA Data Center website. ED said data will be actively updated with more recent earnings data as it becomes available on College Scorecard.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
